VW takes the free Porsche away from top managers
VW-CEO Blume orders billion-dollar cost-cutting program for the group. This includes the upper management level. A report states that Porsche will no longer be an option as a company car for top managers. The first lawsuits against the Porsche ban at the labor court are said to have already been filed.
The cost-saving measures of VW seem to be affecting the top management themselves. According to "Bild" newspaper, the company has issued a Porsche ban for members of the so-called Top Management Circle (TMK). A corresponding letter from personnel management reached more than 200 affected employees in Wolfsburg at the beginning of the year, it is reported.
The top managers apparently cannot part with their luxury cars willingly: "Bild" reports that there are already some lawsuits against the Porsche ban at the labor court in Braunschweig.
So far, VW's important managers have had access to two company cars. Members of the TMK could use them throughout the entire group, including at Porsche, the sports car brand. Due to cost reasons, this privilege is now being withdrawn. Only Porsche managers themselves and the VW board are reportedly still allowed to request a Porsche as a company car.
Volkswagen CEO Oliver Blume has ordered a billion-dollar cost-cutting program for the group. Alone at the core brand Volkswagen, costs are expected to decrease by ten billion euros by 2026, while the return on sales is to increase to 6.5 percent. For the entire brand group, the company has even set a target of eight percent.
Desolate Condition
A spokeswoman confirmed to "Bild" that the Porsche company car "in the context of cost optimization" will no longer be available. The company intends to save a high million-euro amount each year through the ban. In addition, it is said from business circles that VW managers have returned their expensive company cars in a desolate and depreciating condition, as "Bild" reports.
Delivery problems with some Audi engines and poor business with luxury cars had recently caused Volkswagen to suffer a profit decline. The operating result in the first quarter was 4.6 billion euros, down by a fifth compared to the previous year. After taxes, only 3.7 billion euros remained in the coffers.
The fact that there are now even complaints from top managers about the Porsche ban is reportedly incomprehensible to the corporate leadership, according to "Bild", quoting a board member: "Volkswagen top managers who want to drive a Porsche can afford to do so privately."
The cost-cutting measures at Volkswagen extend beyond the regular workforce, affecting even high-level executives. As reported in "Bild", the company's Top Management Circle (TMK) members have been barred from using Porsche cars as company vehicles due to the saving program.
Despite the financial struggles of Volkswagen, some top managers are finding issue with the Porsche ban, as indicated by ongoing lawsuits at the labor court, according to "Bild".
